The inventory tanked over 0.6 per cent to hit an all time low of Rs 521.35 on BSE, With a market capitalization of Rs 23,699 crore, the shares are buying and selling beneath 5, 10, 20, 50 and 100 DMA.
The insurance coverage and monetary aggregator made an honest debut on Dalal Avenue. The scrip received listed at a premium of 17.34 per cent at Rs 1,150 on the NSE in opposition to the difficulty worth of Rs 980.
Is there extra ache forward?
Manoj Dalmia Founder and Director-Proficient Equities Restricted mentioned, “Though the revenues are rising, the working revenue continues to be detrimental. FIIs have additionally elevated their holdings within the March quarter. Trying on the worth motion we will anticipate additional promoting to Rs 454, shopping for is usually recommended solely above Rs 628,” he added.
“The valuations of the corporate have corrected considerably because the IPO. Nevertheless, until the time we don’t see operational profitability or a path in direction of the identical, together with a constant natural progress within the topline, it can discover difficulties in gathering curiosity from retail and institutional traders. Wirth IRDA concentrating on 30-50 per cent CAGR progress in Gross Written Premium for all times insurance coverage insurance policies over the following 5 years, with an intent to extend the insurance coverage penetration in India, tech based mostly platforms like PB will play a serious function within the progress,” Divam Sharma, Founder at Inexperienced Portfolio, SEBI Registered Portfolio Administration Service Supplier instructed ETMarkets.
“We additionally consider that the {industry} will undergo a consolidation going ahead, which can profit PB. Traders ought to nonetheless skip investing within the inventory for now and look forward to the street to profitability earlier than investing,” Sharma added.
“The inventory seems to be good for long-term traders at these ranges. One can purchase this inventory within the vary of Rs 470 to 520 with a cease lack of Rs 444 and a goal of Rs 750,” mentioned Ravi Singhal, CEO, GCL.
Lately, Kotak Institutional Equities initiated protection on PB Fintech with a goal worth of Rs 700 per share, signaling a 33.5 upside from the present market worth. It believes that top multi-year progress will result in constant market share features, thus bettering the unit economics and drive working leverage over time.
“Policybazaar’s dominant place (90% market share) within the on-line insurance coverage market is pushed by (1) its pioneering market place, industry-first choices, massive model investments translating into sturdy model recall, (2) a technological sturdy spine, and ( 3) use of wealthy buyer insights to enhance claims expertise for its insurance coverage companions and develop personalized merchandise,” the brokerage home added.
World brokerage agency Morgan Stanley has a goal of Rs 945 on PB Fintech, which is beneath its problem worth. It believes that the productiveness metrics of the corporate are poised to enhance. Home brokerage agency
finds the inventory value Rs 940.
PolicyBazaar reported a widening of losses to Rs 219.60 crore within the March quarter from Rs 64.38 crore within the year-ago quarter, at the same time as revenues doubled for the quarter to Rs 540.29 crore. Losses had been, nonetheless, down from Rs 298 crore within the December quarter.
Earlier in February this 12 months, Alok Bansal, co-founder of PB Fintech, had offered 28,57,820 shares of the corporate for Rs 236 crore.
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t symbolize the views of Financial Occasions)
